Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.

This bill prohibits New Jersey colleges and universities from paying online program management companies (like third-party firms managing their online courses) incentive-based compensation (such as commissions or bonuses tied to student enrollment or financial aid) except for recruiting international students. It requires all new or amended contracts with these companies to be submitted to the state higher education office within 20 days and approved by the institution's governing board, banning provisions like tuition-based payments, involvement in curriculum design, or use of the school's branding. Institutions must also submit annual reports detailing how these companies spent funds across specific categories, including instruction, student support, and technology. The law applies to both public colleges and licensed for-profit schools offering degree programs.